Will Verizon Offer a CDMA version of the Apple iPhone in 2010?
Suggestions are to write HTS May 31 Calls against any stock you may own. I received 40 cents for them. I
expect the price to fall substantially when HTS goes ex-dividend.
Another suggestion is to write the March 30 Calls in AGNC against the stock. If you can get 35 cents for
them as the stock price goes up, you may find that $30.35 per share is a good price to get for the stock
should it exceed $30 on the day before it goes ex-dividend, which is next Friday, the same day as March
options expire.
Consider the position you are in:
If the stock pulls back below $30, you get to keep the stock and get the dividend as well as the extra $0.35.
If the stock runs up above the $30.35 point in price, don't fret or buy the Calls back. Instead, let the owner
of the Calls take the AGNC stock away from you. Why? Because such a run-up in price will indicate
over-enthusiasm about capturing the dividend. Such 'irrational exuberance' will most likely be followed by
a large drop in price after it goes ex-dividend. You can use the proceeds of $30.35 to buy more shares after
the price drops back down. I suspect that it would drop more than the $1.40 dividend.
Next
Index to minutes
Suggestions are to write HTS May 31 Calls against any stock you may own. I received 40 cents for them. I
expect the price to fall substantially when HTS goes ex-dividend.
Another suggestion is to write the March 30 Calls in AGNC against the stock. If you can get 35 cents for
them as the stock price goes up, you may find that $30.35 per share is a good price to get for the stock
should it exceed $30 on the day before it goes ex-dividend, which is next Friday, the same day as March
options expire.
Consider the position you are in:
If the stock pulls back below $30, you get to keep the stock and get the dividend as well as the extra $0.35.
If the stock runs up above the $30.35 point in price, don't fret or buy the Calls back. Instead, let the owner
of the Calls take the AGNC stock away from you. Why? Because such a run-up in price will indicate
over-enthusiasm about capturing the dividend. Such 'irrational exuberance' will most likely be followed by
a large drop in price after it goes ex-dividend. You can use the proceeds of $30.35 to buy more shares after
the price drops back down. I suspect that it would drop more than the $1.40 dividend.
Next
Index to minutes
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